The Nifty started the session on a subdued note and subsequently traded in a merely 90 point range

The Nifty started the session on a subdued note and subsequently traded in a merely 90-point range. As a result, daily price action formed an inside bar confined within Wednesday's trading range 18668-18528, indicating an extended breather amid stock specific action

The index is undergoing a slower pace of retracement wherein over past five sessions it retraced less than 50% of preceding eight session’s up move 18133-18887, indicating inherent strength. The ongoing breather helped the index to cool off overbought conditions (daily stochastic slipped below 20) and form a higher base that would gradually pave the way to challenge 18900 mark. Eventually, we expect the Nifty to head towards 19400 in coming month. In the process, broader markets would continue with their relative outperformance. However, the move towards 19400 would be in a non-linear manner as bouts of volatility amid global development cannot be ruled out. Thus, extended breather from here on should be capitalised on as incremental buying opportunity as strong support is placed at 18300. The aforementioned positive stance is further validated by following observations

Nifty Bank: 43596

The daily price action formed a bull candle with a higher high - low as the index scaled a fresh all time high (43640 ) signalling continuation of the positive momentum after breather of the last one week

We expect the index to maintain positive bias and head gradually towards 44600 levels in the coming weeks being the 161 . 8 % external retracement of the September 2022 breather (41840 -37387 ) . Dips should be used as a buying opportunity index has strong support placed around 41800 levels